Do you manage contracts, or do they manage you?
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1 Do you manage contracts, or do they manage you? Take control with Open Windows CONTRACT MANAGEMENT AUTOMATION
2 Organisations are more dependent on suppliers than ever before. Typically, around 70% of a large organisation s income is spent on goods and services with third party suppliers. The contracts that govern these business critical relationships need hands-on proactive management. Yet contract management is still one of the least automated business processes. Procurement teams are often using spreadsheets, or disparate corporate computer systems to try and manage vital contract lifecycles. These systems lack the functionality, flexibility and control that professional contract managers need to ensure supply side success. With an increasing reliance on an external supply base it is critically important that risk is minimised and business benefits of outsourcing are realised in practice. "Poor contract management with suppliers can cost organisations the equivalent of around 9.2% of their annual income" - IACCM 2
3 Do you have a proactive or reactive approach to Contract Management? In theory, the risks of managing contracts reactively are fully understood. But in practice too few organisations are managing contracts proactively and often not until a risk becomes a reality does the importance of effective contract management set in. Do any of these problems sound familiar? Missed deadlines and decision points, with renewals by default Inconsistent information and no single source of data Lost contracts, missing paperwork and poor compliance Long contracting cycles, endless delays and cost blow outs High risk contracts with heavy liabilities and no audit trail Non-compliant contractors and a lack of accountability Unsafe and insecure supply lines Heavy reliance on time-consuming manual administration, open to human error Negligible supply chain tier management and due diligence Reactive and hasty variation processes No visibility into overall contract data Open Windows contract management automation provides an integrated software tool to effectively manage down the risk of non-compliance, improve the capture of business benefits and save you time so you can manage supplier performance proactively rather than just administer contracts. Poor contract management compromises your business case Too often the benefits we target in the business case before purchase are never fully realised. All the effort put into negotiating preferable contract terms and conditions are often wasted when the contract is filed and forgotten about. Complex delivery programmes need proactive hands-on management, especially for; Direct supply lines Long-term critical service contracts Major capital works projects Research in 2012 by the International Association of Contract & Commercial Management (IACCM), suggests that poor contract management can cost organisations the equivalent of around 9.2% of their annual revenue. And for large capital project industries such as oil and gas, the cost reached almost 15% of revenues wasted in the supply management process. Worse, IACCM reported in 2013, a study by the European Commission on mega-projects of more than $500m in value discovered that typically 65% of them fail or severely underperform, with an average cost-overrun of a staggering 80%. Failing to invest in good management of supply side projects and your external resource base leads directly to waste. Contract Management automation software helps you take control of your contracts and leverage the benefits outlined in the contract across the entire organisation. 3 Open Windows
4 How Contract Management Automation Can Help Your Organisation 4
5 The Real Benefits of Contract Management Automation Contract management automation enables a wide range of benefits including: 1 8 Centralised contract database One single source of truth for contracts and supplier details with contextual search capabilities so you can always find what you are looking for quickly and easily Automated notifications and ealerts Never miss a deadline or decision point with notifications direct to your no renewal by default 2 Reduced total life cycle costs With fewer delays, more efficient processes, better change management and more proactive supplier management 9 Greater supply side visibility High level and granular transparency across all contract information including real time audit trails for stronger probity and compliance Tiered supply chain management Proactively managing either multi-party contracts or multiple tiers right down your supply chain not just with your prime contractor, but your supplier s supplier and their suppliers too Better category management To optimise savings opportunities and retain and use collated supply market intelligence and grow innovation Safer supply lines Better compliance and due diligence on safety standards and operations with less waste and built-in risk management features Flexible business processes Match workflows to your exact business needs, not the system s needs and gain control and accountability Stronger compliance Access real time reports and dashboards to build compliance and grow stakeholder confidence in supplier performance Streamline data across your organisation Through easy integration with existing wider business applications including ERP, P2P and finance systems to ensure consistency and real time data reporting to offer a single source of truth on all your contracts 6 On time and on budget projects With greater visibility into overall costs, progress and real time reporting of all contracts aggregated and rolled up into named projects with accurate variation management built-in 13 Save time With single data entry, quick-searches, accessible databases, contract and project filing index, self-search audit trails and digital escalation pathways built into a single contracting relational database repository 7 Easy and fast reporting Share real time reports with relevant stakeholders to make more accurate business decisions from projects and contracts dashboards 14 Stronger supplier relationships Easily communicate, collaborate and exchange contract information with your suppliers online, with optional recording and audit-trail collation 5 Open Windows Modular Procurement Software 5
6 The Open Windows Modular Procurement Software Suite Buy what you need, nothing you don t Open Windows Modular Procurement suite is an end-toend contract management solution. Our modular approach allows clients to build a solution that meets their needs and budget, yet allows flexibility to easily integrate additional modules and functionality as they grow. Open Windows Modular software suite offers a selection of 9 modules that each address a specific procurement need. Each module can be integrated alongside the core CONTRACTS module. PROCESSES The flexibility to design a contract management process workflow that s right for your business Enable accountability educate staff and, at the same time make them accountable to consistent tasks, documentation and processes Improve business efficiency flexible process design capacity to optimise your unique process needs Greater control Better compliance and business process management with standardisation of working methods supported by real time audit trail with electronic approvals, online delegations and escalation pathways Reduce time to purchase eliminate bottlenecks, unnecessary tasks, bureaucracy to speed up your purchase process, acquisition service and reactiveness SOURCING Formulate a comprehensive acquisition strategy for your team that links business case, sourcing templates and supplier management Automatic audit trail of entire sourcing process, approvals, evaluations, weightings/scores with auto recording of communications and controlled access Standardise procedures with a library of flexible document templates for EOI, RFx s and sourcing documentation Save time and costs with procurement planning, bid management and response collation functionality plus online evaluation scope and single data entry information flow to all other modules Increase security single or double layer sign-in, with submitted documents and information secured by named user access controls with SSO and IAM protocol options TENDERS Integrate etendering with your contract management approach using single data entry Saves time, reduced data entry publish tenders directly from within SOURCING module Optimise market availability issue private tender list invitations, or public advertisements with selfregistered vendors, supplier notifications Automatic integration with SOURCING module, CATEGORIES and CONTRACTS ensuring consistency and capture of negotiation benefits Greater security Secure tender box locking protocols, SSI controls, encryption COMPLIANCE Ensure 100% compliance within a contract oriented risk-management module including real time audit trails Reduce / manage risk of non-delivery, missed obligations, forgotten rebates, non-performing or uninsured suppliers with the risk register Performance features enable the regular capture and monitoring of KPI /SLA s and obligations; comparison to agreed targets and trend analysis Increase compliance avoid litigation over noncompliance with contractual terms and conditions and obligations, library of client/supplier notices, templates, forms and hold point options Real time audit trail on all compliance matters, with probity and procurement process set against authority levels including auto-audit scheduling, tasking and reporting 6 OPEN WINDOWS
7 CATEGORIES Integrate upstream category management with downstream contract management Simplify data entry filter UNSPSC by category to simplify data entry for end users Better visibility and spend analysis links supplier, contract and tender records into categories, reports by category Capture market intelligence complete supplier pre-qualification, supplier database, SMI capture, ECI records, manage appointed panels Business planning by category record stakeholder strategies to achieve KPIs and key outcomes, business case and acquisition strategy by category PROJECTS A complete project management suite directly aligned with your contract management system Project visibility of forward plans and required activity levels; with milestones management, progressive scheduling and whole-of-life budgeting Save time automating assessment of funding requests, project timelines, compatible with Microsoft Project, auto-scoring, communications recording Highlight exceptions project delays and/or expenditure overruns can be easily identified to enable appropriate action to be taken Better tracking and control advance change approach, issue management and resolution tracking, balanced scorecard reporting, cashflow management and BUDGETS module link CONTRACTS A real time contracts register, searchable database and multi-tiered contract management facility Greater visibility of contractual commitments; even for supplier tiers, multi-party contracts and alliance contracting. Scanned image and text search facility. Never lose contractual documents Reporting suite quick and easy reporting on key contract data Never miss a deadline proactive ealerts for notifications, deadlines, decision points and expiry dates. Avoid automatic contract roll-overs and extensions without review Save time and build consistency single data entry, and full contracts integration with other modules as well BUDGETS Manage your contract budgets, cashflows and inevitable changes in real time Understand actual spend and pay on time full integration with most leading ERP and P2P systems; payment-clock feature for construction industry Save time auto-generate contractual documents such as variation and payment certificates and contractor notices Cost containment visibility of changes to contract values allocated against different budgets internally; includes cashflow management, lifecycle and TCO schedule and payment triggers Eliminate inaccurate payments payments can be validated against schedule of rates, variations, work orders, budgets, cost centres with online approval and escalation pathways SRM Build strong relationships with suppliers using direct data entry by contractors Online communication and collaboration contract managers and suppliers can exchange contract information securely through the system; with communications recording/filing Audit history trail online history of all contracts, data and communications with each party Better supplier relationships understand your supplier strengths and weaknesses with supplier pre-qualifications, evaluation and issue management Tiered supply chain management manage supplier relationships and dependencies right down your supply chain not just your prime supplier and second tier suppliers Modular Procurement Software 7
8 Open Windows Technology Applied Across Industries Open Windows software is currently used by over 150 organisations throughout Australia and New Zealand across a wide range of industries including; State and Federal Government Open Windows software has a strong presence in State Government with whole-ofgovernment arrangements currently in five out of seven State/Territory Governments in Australia, including QLD, SA, WA, ACT and NT, plus various departments in VIC State Government. Under this arrangement organisations may be exempt from a tender process, please check your regulatory body for your eligibility. Local Government Over 50 local councils have purchased Open Windows software. The LG Bundle is an exclusive package for Australian Local Governments with a fixed price, pre-configured environment built to Local Government standards and specific requirements which has proved very popular. In particular, the system s easy relevance to managing large scale ongoing service contracts and minor capital works is especially relevant for local councils as well as major cities. Public Sector Open Windows software was one of the first contract management solutions to meet specific government requirements, initially during the Victorian Competitive Tendering era, and has since retained a strong following in many public sector organisations and agencies attracted by practical solutions for procurement and contract management and ingrained functionality for strong compliance and probity. These include utilities and power providers, transport providers and ports. Education Open Windows software is making a difference in a range of educational organisations by helping centralise the many and varied contractual agreements across different departments, reducing delays and controlling spend with electronic approval processes and enabling a uniform approach to contract management reducing the risk of non-compliance and maverick expenditure. Health Similarly, Open Windows has been adopted by many health providers as their contract management system of choice. Its core functionality lends itself to security of supply for vital direct supply lines and integrates easily to ERP and P2P systems to help manage crucial supply proactively. Construction, Mining and Resources Open Windows software is used by some of the largest mining companies in the world, helping to manage the complexities of managing large scale projects. Our Capital Works Management functionality streamlines information from onsite to office providing a single source of information for all contracts in a project, electronic approval processes, and direct supplier input via the SRM portal for payment claims, variations, site instructions and communications. 8 Open Windows
9 Open Windows software improved our governance, visibility in real time and control over contracting activities Geoff Allison, Iluka Resources Open Windows exceeds our requirements under our contract management guidelines and the etender solution is a one stop portal for tender advertising and submission that our vendors use with ease. Open Windows provides a help desk that is championed by knowledgeable and responsive staff that make our relationship a fruitful one. We are a willing advocate for Open Windows Russell Lynch, City of Darebin The automation of the project datasheet, improved cashflow functionality, automated client billing and automated claims processing has largely replaced work undertaken by 5 full-time staff across two teams Paul Moss, WA Department of Finance, Building Management and Works We regard Open Windows CONTRACTS as a key risk management tool and business information system for council Mick Ross, City of Monash 9
10 Why choose Open Windows Software? Over 150 organisations across Australia and New Zealand are using Open Windows leading edge integrated software solutions. Why do so many organisations choose Open Windows technology? Open Windows software offers the most comprehensive contract management solution on the market Open Windows modular approach enables flexibility to start small and grow as you need, and manage upfront expenditure Single data-entry across all modules saves times and creates consistency throughout the entire contract lifecycle Open Windows software integrates seamlessly with most leading ERP and P2P systems - including SAP and Oracle Workflows can be configured to match your business processes - not the system s Aggregate each contract to defined projects. Directly compatible with Microsoft Project Direct supplier input via a web-based portal provides real time reporting and strong compliance Unique Contractor Payment Management functionality - not commonly present in standard ERP or P2P systems A user-friendly interface and access to ongoing support and learning resources including elearning video library and annual user conferences Local Australian service and help-desk responsiveness A high level of quality assurance, backed by 6,000 hours of testing prior to each quarterly product release Accredited Microsoft Gold Partner in Application Development and an Innovation Partner of the Year Award winner Your choice of deployment, either in the cloud (SaaS) or on-premise behind your firewall 100% Australian owned and operated 10 Open Windows
11 About Open Windows Open Windows is an Australian owned and operated technology solutions provider with two successful businesses, Open Windows Software and Open Windows IDENTITY. Open Windows Software is a leader in contract lifecycle management, delivering solutions to government and private organisations for over 20 years. Open Windows IDENTITY provides consulting services in identity and access management, with experience delivering some of the largest identity projects in Australia. Established over twenty years ago, Open Windows has lived the development curve of information technology and has remained at the forefront of supplier contract management; achieving the prestigious Microsoft Gold Partner in Application Development status, and an Innovation Partner of the Year Award. Today, Open Windows Software s leading edge integrated solutions are helping clients develop and manage critical supply lines, complex tenders, large scale contracts and major projects worth billions of dollars. Open Windows specialist contract management and tendering software is used by over 150 organisations, including whole of government arrangements with QLD, SA, WA, ACT and NT state governments, over 50 local governments, and a wide range of private organisations across construction, mining and resources, health, education, sport, manufacturing and more. The Open Windows head office is based in Melbourne, with regional presence in Sydney, Perth and Canberra. Collectively, the company has a dedicated team of almost 100 IT professionals that work together to provide a high level of service across client consulting, development and support. Former Victorian Premier Jeff Kennett AC has been Chairman of the Board since Open Windows 11
12 See how you can improve your supply side performance Watch the video online at Contact a product expert on or us at info@openwindows.com.au 635 Glenferrie Road, Hawthorn VIC 3122 Australia Australia International info@openwindows.com.au
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